Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The pair has reached record highs as the Russian ruble weakened steeply in the aftermath of the collapse in talks between Russia and Saudi Arabia regarding oil price cuts. Also, sentiment has become bullish for the pair, as indicated by the golden cross by the 50-day and 200-day moving average. Meanwhile, this Monday, Russian authorities banned foreign nationals from entering the country, closed state schools, and limited mass gatherings in Moscow to curb the spread of the coronavirus. The ban will be in effect from March 18 to May 1. However, diplomats, airplane crew members, and some other categories will be exempt. This news comes as the country’s health officials confirmed they recorded 30 new cases of coronavirus in the past 24 hours, bringing the total for the country’s COVID-19 infections to 93. According to Deputy Prime Minister Tatyana Golikova, 30 new cases contracted the disease inside Russia.
The pair has also risen steeply in recent sessions, as traders dumped the riskier Polish zloty for the euro. Sentiment has been increasingly bullish as shown by the upward inclination of the 50-day moving average, although it remains below the 200-day MA. The Polish central bank’s management board said on Monday it was starting large-scale purchase of treasury bonds on the secondary market. It then called for cuts in interest rates and reserve requirements to combat the effects of the coronavirus. Similar to many countries, Poland has taken measures to stop the virus’ spread. It has banned foreigners from entering the country, shut down schools and other public places. Public gatherings are limited to only 50 people. Last Friday, the board’s statement comes from central bank governor Adam Glapinski for cuts in interest rates. The central bank has not yet acted on borrowing costs, which have been at a record low of 1.5% since 2015.
The pair is currently trading in the red now, pulling back from recent highs after jumping to October 2019 highs following the crash of the equity markets last week, which recorded the historic Black Monday 2020 and Black Thursday 2020. For Sweden, the government presented a tax package worth more than 300 billion Swedish kronor ($31 billion) to support the economy amid the coronavirus outbreak. Its government also said it would allow companies to defer tax and VAT payments for up to a year to help boost their liquidity. The package also entails the government assuming the full cost of sick leave from companies through next month and May. The largest cost will come from allowing companies to put off paying tax and VAT for up to a year. But Swedish Minister of Finance Magdalena Andersson Sweden is in a strong position to bear the financial cost of the outbreak with strong government finances.
The daily chart showcases how steep the surge in the euro in recent sessions, getting boosted amid the weakened sentiment in the market. Sentiment is slowly getting positive for the euro in this pair, similar to many other pairs of the euro. The European Central Bank and other major central banks are set to offer weekly US dollar operations with 84-day maturity on top of the existing one-week operations. The banks include the Bank of Canada, the Bank of England, the Bank of Japan, the US Federal Reserve, and the Swiss National Bank. Meanwhile, the Czech central bank delivered an unexpected 50 basis point cate cut on Monday. It then said it was ready to take further steps to soften the blow from the coronavirus outbreak. The cut its main two-week repo to 1.75% at an out of ordinary meeting on the day the crown lost more than 3% of its value, its biggest one-day decline since the bank started intervention in 2013 to weaken the currency.